Real Estate Investor Magazine South Africa August/September 2019 | Page 59

W
hen it comes to retirement, one of the most dread-
ed phases is that of downsizing. Retirees often
struggle to cope with the decision to sell a home
they have spent nearly a lifetime in and are faced with the
option of downsizing.
Downsizing involves moving from a home, owned through
freehold, to one under a sectional-title ownership. The life
rights model, a new concept regarding the acquisition of a
property is well suited to the retired market. Within this model
a retiree essentially buys the right to occupy a property for the
rest of their lives.
A life right’s purchase can offer a sense of community,
increased levels of security, continuous health care and an
option of activities. All these offerings are available without the
maintenance issues and financial worries.
Moving out of the home where one has lived 20,30 or 40
years involves a massive mind shift. Downsizing involves
getting rid of a lifetime worth of material objects as a way of
downscaling for more comfortable living in the future.
As daunting as this concept may appear there are an array of
benefits for those considering downsizing for retirement.
BENEFITS OF DOWNSIZING
One of the most significant benefits of downsizing is the
financial costs. If applicants choose to apply through the life
rights model, they are able to save on monthly maintenance
expenses. The selling of a range of possessions when
downscaling can provide additional financing.
“We can also assist by fitting
existing furniture into a new
apartment, suggest items to sell
and advice as to where to buy new
furniture to suit apartment living”
The transition towards a community environment can
improve resident’s quality of life as there are a wealth of
activities and facilities available at retirement villages. Another
benefit is the enhanced security system available.
Managing Director of Evergreen Lifestyle Villages, Garry
Reed provides some advice for retiree’s looking to downsizing.
“Of course, it is imperative to do your homework when
“Of course, it is imperative to do
your homework when looking
for the right retirement village.
Many retirees register with
several villages years prior to
being ‘ready’ for the move. “
looking for the right retirement village. Many retirees register
with several villages years prior to being ‘ready’ for the move.
But when it happens, it is usually a step after the loss of a loved
one, or a partner needing nursing care,” says Reed
WHAT TO GET RID OF WHEN DOWNSIZING
A general rule of thumb is to begin the downsizing process
three months before moving out of your current home. Items
that are unwanted by family members can be donated to
charity.
Marie Kondo, the Japanese cleaning consultant has
revolutionised the concept of decluttering. Her theory stems
from the feeling of joy, if an item no longer ‘sparks a sense of
joy’, it is best to donate or sell the item. Her concept has gone
globally viral and prompted a range of individuals to part
with their belongings in an effort to live a simple and more
organised life.
Various retirement villages such as Evergreen offer
experienced staff who are able to help prepare a home for sale.
This includes garden maintenance or modernising the kitchen
with new fixtures or a fresh coat of paint.
“We can also assist by fitting existing furniture into a new
apartment, suggest items to sell and advice as to where to
buy new furniture to suit apartment living,” says Astra Wilson,
a representative of Evergreen Lifestyle.
“On occasion Evergreen has even gone as far as furnishing
the apartments from scratch for a new resident,” she adds.
GARRY REED recently joined Evergreen Lifestyle Villages
as MD after a successful hospitality career with Tsogo
Sun Hotel Group. . He’s also been General Manager at
Tsogo Sun, taking charge of the Cape Sun and then
the Cullinan.
SA Real Estate Investor Magazine AUGUST/SEPTEMBER 2019
57